Provider Sponsored Organizations: A Chance for Rural?

• What they are

  • Physicians, hospitals, possibly others
  • Most services available through PSO members, although this standard relaxed for rural

• Assume risk as a MedicarePlus organization, on prospective basis

  • Can reinsure for single event over $5000, up to 90% of expense above 115% of budget

• Secretary of HHS to establish solvency standards

  • Can take into account organization’s ability to provide services directly
  • Also other means such as reinsurance

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